By Diane Olson
Are you thinking of starting to shop for a home? If you are like most people, you might pick up your phone check out a real estate app and maybe plan on checking out some open houses. However, the first thing you should do before you start shopping for and buying a home is to get pre-approved for a Home Mortgage.
Why you ask? The answer to that is based on several factors that are going on in the real estate market right now.
Low Inventory of Homes for Sale makes for more competition and less time to get a loan once you find your property. So, by having pre-approval you are ready to respond with your offer quickly.
More and More Sellers Require Proof of Funds with any offer submitted so unless you have cash you need pre-approval on your loan. It is not just short sales and bank owned properties that want pre-approval and proof of funds anymore, this is becoming the norm.
Loans are Complicated this is not something you want to have to rush, by getting pre-approved you have more time and can make better decisions. Pick a strong loan representative, a person willing to go through the process with you and offer you many options for success. Ask your REALTOR® for a recommendation, she can probably supply you with several great options.
Interest Rates are Low, But This May Not Last Long, locking a rate can help! Changes in interest rates are coming, whenever you buy this will have to be taken into consideration, but anyone who is pre-approved saves themselves from last minutes surprises when they are trying to buy a home.
If Your Credit Isn’t Perfect, like many of us, you will want to take the steps to get your credit score higher. Talking with your loan representative can be a big help in getting there.
By Getting Pre-Approved You Can Find Out Exactly How Much Home You Can Afford saving you from getting disappointed once you find the home you want and then maybe not qualifying for it or worse, not being able to afford it. This also gives you better credibility with the seller in that you are a qualified and real buyer for their home.
And Finally, You Should Strongly Consider Signing a Buyer’s Agreement With a REALTOR® to represent you in shopping for your home. This shows an earnest intent and sellers will look at you and your offer more seriously.
Good luck and enjoy the process, because if you do it right, buying your new home, can be one of the most enjoyable times of your life!